Banca de DEFESA: JOARLLA DE MEDEIROS MACEDO SILVA

Uma banca de DEFESA de MESTRADO foi cadastrada pelo programa.
STUDENT : JOARLLA DE MEDEIROS MACEDO SILVA
DATE: 28/02/2023
TIME: 10:00
LOCAL: Sala A1
TITLE:

KEY AUDIT MATTERS: RELATIONSHIP WITH THE LEVEL OF DISCRETION OF THE ACCRUALS AND THE RISK OF LITIGATION

KEY WORDS:

PAAs. Earnings Management. Auditor Litigation Risk.

PAGES: 70
BIG AREA: Ciências Sociais Aplicadas
AREA: Administração
SUBÁREA: Ciências Contábeis
SUMMARY:

The audit report is considered a fundamental product delivered by independent auditors and in recent years it has undergone changes aimed at making it more informative to users of legal information (MARQUES; PORTUGAL; ALMEIDA, 2019). With regard to these modifications, in 2016, it was part of ISA 701, equivalent to NBC TA 701 in Brazil, which requires auditors to prove in their report critical points identified during audits, called Main Matters of Auditoriums (PAAs). In this sense, this research aims to investigate the relationship between the reported PAAs and their informational content, the level of discretion of the accruals and the auditor's litigation risk, in companies listed on B3 S.A. - Brazil. Handbag. Branch (B3) in the period from 2016 to 2019. To achieve the proposed objective, two econometric models were estimated, one to verify the
relationship between the reported PAAs and the accrual discretionary level (OLS) and the second model to investigate the association between the reported PAAs and the Auditor's Litigation Risk (Logit). The results suggest a negative and statistically significant relationship between the amount of PAAs disclosed and the discretionary level of additions. With regard to the informational content of the PAAs, it was identified that the five categories of ACCA, (2018) and the two codifications of Lennox, Schmidt and Thompson (2019) and Sierra-García et al. (2019) positively influenced the discretionary level of additions. As for the relationship between the amount of PAAs disclosed and the risk of legal proceedings, a negative and significant relationship was found, thus indicating that the disclosure of the PAA reduces the chance that the company falls into financial difficulty, causing a future problem for the controller. With regard to the informational content of the PAAs, it was found that the five categories of ACCA, (2018) and the two encodings by Lennox, Schmidt and Thompson (2019) and Sierra-García et al. (2019) positively influenced the chance of litigation risk for the auditor. Based on the findings of this research, it is possible to infer that the greater the informative value of the PAAs, the greater their signaling capacity for the level of discretion of the additions and the auditor's risk of litigation, consequently, the greater the contribution to verification of the quality of accounting information and guidance to users of accounting information and auditing firms regarding the likelihood of a company being included in a group most likely to face financial difficulties and mitigation of the auditor's litigation risk. the estimation method by Ordinary Least Square (OLS), where the suitability will be tested and the choice between OLS Pooled and Panel estimation (fixed or random effects) will be made. The econometric model for verifying the association between PAAs and the Auditor's Litigation Risk will be analyzed through Logistic Regression, according to previous empirical research on the topic (SHU, 2000, SUN; LIU, 2011; SILVA et al. 2020).

COMMITTEE MEMBERS:
Interno - 2610882 - DIOGO HENRIQUE SILVA DE LIMA
Presidente - 2314118 - ERIVAN FERREIRA BORGES
Externo à Instituição - JOSÉ ALVES DANTAS - UnB